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March 28, 2025
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Nowhere to enter actual meal expenses in PA-40 Schedule C

Related products:ProConnect
  • March 28, 2025
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Pennsylvania does not allow federal per-diem rates for meal deductions on their Schedule C. Details are located on Page 28 of the PA-40 instructions, under Other Business Travel Expenses. Instead, PA allows 100% of actual meal expenses. ProConnect does not have a box to enter the different number, like it does for the Car & Truck Expenses or Vehicles (under Rent) adjustments.

It would be nice for ProConnect to add a line item for actual meal expenses on Schedule C under the Pennsylvania Adjustments section of the Federal Sch C input screen (under State & Local).

For this client, the actual meal expenses were higher than the federal deduction and I was able to add the difference under "Entertainment expenses in full". However, this cell will not accept a negative number and that'll be a problem when I have a client who spent less on meals than the federal deduction using per diem calculations.